Question
A.Illustrate the concept of 'Interest Rate Parity' [IRP] and 'Covered Interest Arbitrage' with a numerical example. B.What is Currency Carry-Trade? Explain. What are the popular
A.Illustrate the concept of 'Interest Rate Parity' [IRP] and 'Covered Interest Arbitrage' with a numerical example.
B.What is Currency Carry-Trade? Explain. What are the popular global carry-trade strategies? What are its inherent risks?
C.What are the implications of IRP and Carry-Trade for Foreign Exchange Market?
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Financial Management Concepts and Applications
Authors: Stephen Foerster
1st edition
013293664X, 978-0132936644
